Commercial Vehicle Insurance Transfer Process

Step 2 – Insurance Policy Transfer:

After availing of the certificate of NCB retention, it is time to get the insurance policy transfer. For transferring the commercial vehicle insurance policy, you are required to provide the below-mentioned documents to the insurance provider. The list of these documents is given below:

• The documents of the policy
• The updated and changed Registration Certificate (RC) has the name of the new commercial vehicle owner. If the RC book is not updated yet, you must submit Form 29.
• No Objection Certificate from the seller that is you.
• New policy application form
• Inspection report of the commercial vehicle. This inspection is conducted by the insurance provider.
• The difference between the actual premium of the insurance policy and after deducting the NCB.

In this way, you will be able to get your commercial vehicle insurance policy transferred to its new buyer.

Why Is Commercial Vehicle Insurance Policy Transfer Important?

Transferring a car insurance policy is necessary to avail the advantages of the claim and therefore as a commercial vehicle owner, you must have an insurance policy in place. For example, Mr. A purchases a commercial vehicle from Mr. B but delays the process of transferring the insurance policy. During this period, the commercial vehicle purchased by Mr. A meets with an accident and it is very badly damaged. But, Mr. A would not be able to claim the insurance as the process of transferring the commercial vehicle insurance policy was not completed.

Key Points to Consider While Transferring the Commercial Vehicle Insurance Policy

While you are transferring the commercial vehicle insurance policy, you must remember these points:

• According to the Motor Vehicle Act, the buyer of the commercial vehicle is mandated by law to get the commercial vehicle insurance policy transferred to his/her name.
• The policy transfer process should be done within 14 days of selling the commercial vehicle.
• During these 14 days, when the transfer of commercial vehicle insurance policy is in process, the cover of third-party would automatically be provided in the name of the vehicle buyer. However, if you fail to perform the transfer process within these 14 days, there would not be any third-party cover given to the new owner of the vehicle.
• If there is an insurance claim during this tenure, it will not be rejected as the transfer of the insurance policy is in process. It would be paid soon after the proof of insurance transfer is given by the insurance provider.

Summing it Up!

These are the steps of transferring a commercial vehicle insurance policy to its new owner. However, keep the key points in mind so that the new owner if in a case needs an insurance claim during the policy transfer period can get it without any trouble. So, try and get the commercial vehicle insurance policy transfer within the mentioned time so that there is no hassle in near future.